New Delhi, Jan. 24 -- Assets under management (AUM) of gold loan-focused non-banking financial companies (NBFCs) are expected to cross Rs 4 trillion by March 2027, driven by high gold prices, growing demand for secured credit and regulatory easing, according to Crisil Ratings.

Crisil expects gold-loan NBFCs to grow at a compound annual rate of about 40 per cent between FY25 and FY27, much faster than the 27 per cent growth recorded between FY23 and FY25.

Gold Prices Drive Growth

A sharp rise in gold prices has boosted lending capacity. Gold prices rose nearly 68 per cent in the first nine months of the current fiscal, increasing the value of collateral and allowing higher loan disbursements.

Aparna Kirubakaran, Director, Crisil Rating...